Public Disclosure Authorized LATIN AMERICA AND CARIBBEAN Jamaica Governance Global Practice IBRD/IDA Investment Project Financing FY 2015 Seq No: 7 ARCHIVED on 28-Jun-2018 ISR32761 Implementing Agencies: Ministry of Finance and the Public Service, Government of Jamaica Public Disclosure Authorized Key Dates Key Project Dates Bank Approval Date:07-Jul-2014 Planned Mid Term Review Date:06-May-2019 Original Closing Date:31-Jan-2020 Project Development Objectives Effectiveness Date:27-Oct-2014 Actual Mid-Term Review Date:24-May-2018 Revised Closing Date:31-Jan-2020 Public Disclosure Authorized Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to strengthen public resource management and support selected public sector institutions in facilitating a more enabling environment for private sector growth. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Strengthening Public Investment Management System (PIMS):(Cost $8.00 M) Public Disclosure Authorized Strengthening Budget Preparation Process and Result Based Budgeting:(Cost $2.70 M) Adaptive Public Sector Approaches:(Cost $12.10 M) Fostering Industrial Growth and Trade Facilitation:(Cost $5.00 M) Project Management:(Cost $1.13 M) Modernizing the Accountant General's Department (AGD):(Cost $6.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Unsatisfactory 6/28/2018 Page 1 of 8
Overall Implementation Progress (IP) Moderately Satisfactory Moderately Unsatisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions During the Mid-Term Review held from May 24-31, 2018 the team and the GoJ jointly evaluated the main implementation challenges and risks facing the project, and determined actions to keep implementation on track. At this stage, there are three main issues related to implementation: 1. With roughly 1.5 years before closing, a number of implementation schedules for key activities now extend beyond project closing. This is specifically the case for the public investment management system implementation, the roll-out of Medium Term Results Based Budgeting across all Ministries, Departments and Agencies and the changes to the legal framework needed for the National Compliance and Regulatory Authority. 2. Disbursement continues to remain low relative to projections and it is unlikely that all funds will be fully utilized by closing. 3. Effective management of the project continues to hinder implementation Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Substantial Substantial Macroeconomic -- High High Sector Strategies and Policies -- Substantial Substantial Technical Design of Project or Program -- Substantial Substantial Institutional Capacity for Implementation and Sustainability -- Substantial Substantial Fiduciary -- Substantial Substantial Environment and Social -- Low Low Stakeholders -- Moderate Moderate Other -- Moderate Moderate Overall -- Substantial Substantial Results Project Development Objective Indicators PHINDPDOTBL Percentage of MDAs that prepare their budgets according to the updated program definitions (Percentage, Custom) Value 0.00 14.80 14.80 90.00 6/28/2018 Page 2 of 8
The number of MDAs that prepare their budgets according to the updated program definitions is still 8 out of 54. The programs of nine additional MDAs will be rationalized in June, led by PEX staff using training materials developed by Deloitte. The goal is to tackle the remaining MDAs by November with the support of consultants. Terms of Reference have been drafted for a Team Lead and Curriculum Development for MTRBB. Achievement of this indicator is contingent on the consultants being hired, the MTRBB curriculum being further refined, and the training materials updated accordingly. PHINDPDOTBL Percentage increase in quality related services provided directly to public and private sector (Percentage, Custom) Value 0.00 0.00 0.00 15.00 Date 15-May-2017 04-Dec-2017 08-Jun-2018 31-Aug-2019 The baseline number (3,350) transmitted to the Bank during the project restructuring in 2017 was incorrect. The baseline needs to be revised to reflect the correct numbers for 2016/2017: 9,489 services. The 2017/2018 number of services has increased to: 14,526. This represents an increase of 53% from 2016/17, well above the target of a 15% increase. Overall Intermediate Results Indicators The updated and centralized public investment database covers all Capital A and Capital B (Yes/No, Custom) Value N N Y Y Indicator achieved. Database will be continuously updated. 6/28/2018 Page 3 of 8
The Public Sector Investment Program (PSIP) incorporates Capital A and B public investment projects with estimated fiveyear operating and maintenance costs linked to long term development goals (Text, Custom) Value PSIP does not include information on projects' estimated five-year operating costs All new projects submitted include the five year operating and maintenance costs linked to long term development goals. O&M costs are still needed for old projects. 100% of investment proposals submitted for PSIP include estimated 5-year O&M costs 100% of projects in PSIP incorporate public investment projects with estimated fiveyear operating and maintenance costs fully linked to long term development goals and medium-term priority areas Annual Budgets submitted and approved before the fiscal year starts (Yes/No, Custom) Value N Y Y Y 6/28/2018 Page 4 of 8
MDA budgets submitted to the MoFPS set out objectives, policies, strategic outcomes and performance targets of each Ministerial department in line with the respective business plan (Percentage, Custom) Value 0.00 59.00 85.00 95.00 46 of 54 MDAs submitted budgets the MOFPS in line with the respective business plans. A citizen s budget is prepared (Yes/No, Custom) Value N N N Y The citizen's budget is still in draft form and is expected to be launched for the next budget cycle. Change Management Action Plans for Components (Number, Custom) Value 0.00 2.00 5.00 3.00 Target achieved. The list includes: (1) Strategic Review and Change Management Plan for the former Ministry of Industry Investment and Commerce, (2) Change Management Plan for the Ministry of Finance and the Public Service, (3) Change Management and Risk Mitigation Plan for the Bureau Standards of Jamaica, (4) Change Management Plan for the implementation of Medium Term Results based budgeting, (5) A Strategic review and Change Management Plan for the Ministry of National Security 6/28/2018 Page 5 of 8
Decrease in National Compliance and Regulatory Agency (NCRA) inspections at the ports of entry (types of inspections) (Percentage, Custom) Value 100.00 87.00 64.00 80.00 Date 24-Jul-2015 04-Dec-2017 08-Jun-2018 31-Aug-2019 Target Achieved. Details on the calculations: 2014/15: 4,850 (new baseline date established for July 2015) 2015/16: 4,241 (measured in previous ISR of Dec. 2017) - 87% of 4,850 2016/17: 3,126 (measured now June 2018) - 64% of 4850 2017/18: Data not available yet. Should be available in July/ August 2018. Increased number of financial and accounting reports produced by the Accountant General s Department (AGD) (Text, Custom) Value 5 reports out of 18 are produced 6 reports out of 18 are produced 6 reports out of 18 are produced 5 additional financial and accounting reports are produced (cumulative: 15/18) Date 15-May-2017 04-Dec-2017 08-Jun-2018 31-Aug-2019 This is the Disbursement Linked Indicator. Four additional reports are due by Dec. 1 2018. No submission has been made as of 6/26/2018. Improved cash forecasting model developed for detailed revenue and expenditure items covered by the TSA to generate daily cash forecast and balances (Text, Custom) Value Model used to generate monthly cash forecast and balances The cash management team uses a simple customized in-house model in terms of forecasting their revenue and The cash management team uses a simple customized in-house model in terms of forecasting their revenue and expenditure. The Model used to generate daily cash forecast and balances 6/28/2018 Page 6 of 8
expenditure. The model is currently used to generate daily cash forecast and balances. model is currently used to generate daily cash forecast and balances. Date 15-May-2017 04-Dec-2017 08-Jun-2018 31-Aug-2019 Indicator achieved with recommendations for continuous improvement. Currently the revenue and expenditure forecast are produced daily through the use of a model designed in excel. Until IFMIS comes on stream an interim automation plan is being pursued. There is potential for an expansion of the components within the model viz-a viz expanding the number of bank accounts in the model. The major bank accounts are included in the model namely the Consolidated Fund, Central Payment Account (CPA), and Automated Clearing House. Overall Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P146688 IBRD-84060 Effective USD 35.00 35.00 0.00 8.95 26.05 26% P146688 TF-A1633 Closed USD 1.39 1.39 0.00 1.53 0.00 100% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P146688 IBRD-84060 Effective 07-Jul-2014 03-Sep-2014 27-Oct-2014 31-Jan-2020 31-Jan-2020 P146688 TF-A1633 Closed 22-Dec-2015 18-Jan-2016 18-Jan-2016 30-Sep-2016 30-Jun-2017 Cumulative Disbursements 6/28/2018 Page 7 of 8
Restructuring History Level 2 Approved on 30-Sep-2016,Level 2 Approved on 30-Jun-2017 Related Project(s) There are no related projects. 6/28/2018 Page 8 of 8